PRICING NOTICE: Proposal to launch equivalent grade copper cathode premium assessment

Following a period of market research in the copper cathode market, Fastmarkets proposes to launch fortnightly assessments of equivalent grade (EQ) copper cathode premiums, basis cif Europe and Shanghai.

The introduction of the premiums will begin Fastmarkets’ pricing coverage of non exchange-deliverable copper cathode trade. Fastmarkets has for many years tracked premiums for grade A, exchange deliverable cathodes in Europe, Shanghai, Asia and North America.

EQ copper cathodes conform to the specifications set out for London Metal Exchange-registered grade A copper cathodes but are not registered brands on any global metals exchange.

The proposed new assessment will provide the market with an improved picture of global copper cathode business, with preliminary market feedback indicating consistent spot liquidity within the proposed locations.

Additionally, volatility in the LME’s three-month copper price and China’s implementation of category 6 and 7 scrap import bans earlier this year have prompted physical participants to seek further opportunities in physical copper business beyond top brand cathodes.

Fastmarkets now invites market participants to take part in a consultation on its proposal to launch premium assessments for copper cathode equivalent grade, cif Europe and cif Shanghai.

The proposed specifications for the premium assessments are as follows:

Assessment: Copper cathode equivalent grade, cif Europe
Quality: 99.9935% min copper conforming to LME specifications; Ag: 0.0025% max, As: 0.0005% max, Bi: 0.00020% max, Fe: 0.0010% max, Pb: 0.0005% max, S: 0.0015% max, Se: 0.00020% max, Te: 0.00020% max
Quantity: 25 tonnes
Location: Europe
Timing: Spot, fortnightly
Unit: USD per tonne
Payment terms: LC, TT, DP or other payments normalized.
Publication: Fortnightly, Tuesday 4pm London time.

Assessment: Copper cathode equivalent grade, cif Shanghai
Quality: 99.9935% min copper conforming to LME specifications; Ag: 0.0025% max, As: 0.0005% max, Bi: 0.00020% max, Fe: 0.0010% max, Pb: 0.0005% max, S: 0.0015% max, Se: 0.00020% max, Te: 0.00020% max
Quantity: 25 tonnes
Location: Shanghai
Timing: Spot, fortnightly
Unit: USD per tonne
Payment terms: LC, TT, DP or other payments normalised.
Publication: Fortnightly, Tuesday 4pm London time.

The consultation period for this proposed assessment will end one month from the date of this pricing notice on November 6, 2019 with changes taking place from Tuesday November 12, 2019, subject to market feedback.

To provide feedback on this proposal or if you would like to provide price information by becoming a data submitter to this premium, please contact either Hassan Butt or Sally Zhang by email at: pricing@fastmarkets.com. Please add the subject heading FAO: Hassan Butt, re: Copper cathode equivalent grade cif Europe or FAO: Sally Zhang, re: Copper cathode equivalent grade cif Shanghai.

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